If the Income Elasticity of Demand for a Good Is

question 140

Multiple Choice

If the income elasticity of demand for a good is -2.5,then

• A)it is a normal good,and its demand curve will shift to the left if buyers' incomes increase
• B)it is a normal good,and its demand curve will shift to the right if buyers' incomes increase
• C)it is an inferior good,and its demand curve will shift to the right if buyers' incomes increase
• D)it is an inferior good,and its demand curve will shift to the left if buyers' incomes increase
• E)there is insufficient information to determine whether the good is normal or inferior

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Definitions:

Mutual Respect

A reciprocal understanding and acknowledgment of the value and integrity of others, fostering positive and respectful interactions.

Transitive Inference

A logical process where if A relates to B and B relates to C, then A must relate to C, often tested in cognitive psychology.

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, decision-making, and understanding complex ideas.

Shorter

Relating to a length or duration that is less than average or than previously mentioned.